Citing an unnamed person with ties to South Korean intelligence, the paper reports that North Korea is working with these types of weapons to test the feasibility of putting Anthrax in the regime's intercontinental ballistic missiles.
North Korea has a store of between 2,500 and 5,000 tons of chemical weapons, South Korea has previously said, adding that it was capable of producing biological agents like anthrax and smallpox.
The North's widely-condemned nuclear and missile programs have made significant progress under leader Kim Jong-Un, who has overseen four nuclear tests and dozens of missile launches since taking power in 2011.
"It is the U.S. that conducts military aggressions and cruise missile attacks on sovereign states in broad daylight while faking "possession of WMD" and "use of chemical weapons" of those countries", said the statement.
North Korea has stepped up its missile and nuclear tests to an unprecedented rate this year, and any new provocation from the North would "inevitably have an impact" on the exercises, the Blue House official said. Pyongyang has long described the joint exercises on land, air and sea as nothing more than preparations for war.
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It warns that as North Korea's missile program continues to develop, it does more than provide the regime a way to hit the United States with a nuclear weapon. Why would anyone put a bacterial weapon like anthrax on an ICBM, anyway?
Because they can survive in such harsh climates, Anthrax spores have been weaponised by at least five countries: Britain, Japan, the United States, Russia and Iraq.
A wave of attacks occurred in the U.S. in late 2001 with the spores placed in envelopes which killed five people.
Anthrax contaminates the body when spores enter it, multiplying and spreading an illness that could be fatal.
This suggests that the alleged tests are taking place in laboratories, rather than in actual warheads on recent North Korean ICBM tests.
China and Russian Federation have proposed a "freeze for freeze" arrangement under which North Korea would stop its nuclear and missile tests in exchange for a halt to the exercises.
However Bejing would ask a high prize to take more action - possibly forcing America to withdraw from the region.